The End of the Road

 Good blogfodder on Leap Year Day, so I can’t call a truce then to my labors, until I blog Leonard L. Best and Evelyn R. Best, 2016 T. C. Memo. 32, filed 2/29/16. And though Len and Eve are the headliners, this is the story of their cunctatory attorney, whom I called Mac, back in 2014. See my blogpost “A Further Cautionary Tale,” 4/28/14, for the backstory.

Mac entered a stipulated decision, Len and Eve failed to pay, IRS went with the NITL, and Mac played the losing 23C gambit. No, this is not the Section 6751(b) Boss Hoss gambit; that can win. 23C is a nonstarter.

At the CDP, “(H)e reiterated his earlier request that Ms. Hernandez ‘provide a “summary record of assessment”, Form 23C and a Form 4340, plus a copy of the actual document signed by the officer delegated authority to assess in this case, his name, and the delegation order showing his authorization to assess in this case.” 2016 T. C. Memo. 32, at p. 4.

The AO told him to fuggedaboutit. No required form for assessing.

IRS’ counsel spoke to Mac before trial, and gave him the notices and caselaw. IRS told Mac if he kept going, he’d get the Section 6673 chop.

He did and he did.

Finally, Judge Halpern issued the opinion discussed in the blogpost abovecited, and told IRS to gin up the number Mac’s shenanigans cost us taxpayers.

They do. But how do we determine the degree of culpability necessary to trigger the chop?

It’s unclear, and Judge Halpern has a canter through the conflicting learning. Ultimately, though, Mac knew the 23C was a dead loser, and that’s bad faith.

Costs accrue from the start of litigation (you can’t prolong what doesn’t exist).

Mac also violated Tax Court Rule 33, and Rule 3.1 of the ABA Model Rules of Professional Conduct.

IRS’ counsel puts in their extra time and modest hourly rates.

And his clients never read any of the papers or asked for any explanations. Sophisticated or not, they can’t turn a blind eye to Mac’s shady doings. Len and Eve have the $5K chop reaffirmed.

And Mac will be out $19K.